Ms Laverne McGuinness:

There are a number of points to be made. In 2009, at the time when we wrote requesting details of the individual salaries on foot of a letter from the Secretary General, it was the first time we received or indeed requested visibility in respect of the salaries of the individuals there at higher levels. It is also important to note that at the time, there was no service level arrangement with these organisations. The HSE had been established in 2005. Funding arrangements were organised in a different way. It was an inherited position from former health boards. Late in 2009, a service level arrangement was developed. The agencies were consulted. It took a long time to develop it. It was an extensive document but it was the main tool used to manage the relationship at an area level with the organisations. However, it did not fully reflect the meetings with the organisations.

We have learned that the service level arrangement needs to be improved. Some areas should have been included in it but were not included. Mr. Cregan has already alluded to the piece regarding the requirement for greater financial scrutiny of the financial accounts. The piece with regard to public pay policy was only inserted into the service level arrangement in 2010 to 2011 so it was not legally contractual. We have since worked on a revised service level arrangement. We have certainly taken what we have learned from the CRC into account. There is now a centralised unit looking at service level arrangements and there will be one manager responsible for the management of the totality of all the funding streams, be they to the CRC or otherwise. In 2014, we introduced a compliance statement. In fact, this statement puts in place and strengthens a relationship with the chairs of the various boards. Heretofore, the engagement has been with the CEOs and the executives so the relationship is with the chairs of the boards. We met each section 38 agency in December. A compliance statement and a code of good practice on how boards should operate were produced. This has begun and we have that back at this point in time.